RIL Partly-paid Shares Under Rights Issue To Debut On Bourses On Monday
Reliance Industries (RIL) partly-paid shares will make their stock market debut on Monday. These shares were issued in rights issue programme, which concluded on June 3 and garnered 1.6 times subscription.
About 442.6 million partly paid-up shares with face value of Rs 2.5 per share were issued in the rights issue at Rs 314.25 per share. In simple terms, these shares are worth a fourth of the fully-paid up shares of RIL that are traded on the bourses. On Friday, the fully-paid shares closed at Rs 1,589, up 3.3 per cent.
At the last closing price, the partly paid up shares will be worth Rs 397.2, a premium of 26 per cent to the rights issue price. Market players said the partly paid up shares will move lock in step with the fully paid shares but could trade a premium given their low denomination.
ALSO READ: Financials rebound; Bajaj Finance, RBL Bank gain over 10% from day's low
After Tata Steel, RIL will be the second company whose partly-paid up shares will be traded separately. RIL’s partly-paid up shares will be converted to fully-paid up shares in November 2021. The holders of the partly-paid up shares will have to pay second installment of Rs 314.25 in May 2020 and the balance Rs 628.5 in November 2021. RIL issued shares at Rs 1,257 apiece in the rights issue but the entire payment has to be paid in three tranches.
RIL will raised a total of Rs 53,124 crore through the rights issue, highest-ever raised by an Indian company through this instrument.
The new shares issued under the rights programme were allotted on Thursday. Following the rights issue the promoter holding in RIL has inched up slightly from 50.07 per cent to 50.29 per cent, data provided on the BSE showed.
Titi Coles Legacy In Finance: Pioneering Diversity And Leadership
Titi Cole, one of the most senior Black women in the world of finance, recently exited her high-profile role at Citi. He... Read more
Rising Rates, Rising Challenges: Bankers Adapt To Serve Troubled Companies In A Changing Economic Landscape
As interest rates climb, troubled companies are facing heightened financial pressures, prompting them to seek assistance... Read more
The Elusive Nature Of Fraud Detection: Exploring The Auditor's Dilemma
In the intricate world of financial reporting, auditors serve as guardians of integrity, tasked with uncovering discrepa... Read more
The Battle For Depositors: US Lenders Ramp Up Efforts Amidst Rate Uncertainty
In the competitive landscape of the US banking sector, retaining depositors is paramount for lenders seeking to maintain... Read more
Beyond Capital: Unveiling The Complexities Of Bank Failure Prediction
In the realm of banking, the ability to predict and prevent failures is paramount for financial stability and consumer c... Read more
Central Banks And The Economic Horizon: Steering Through Uncertaintie
In the evolving landscape of global financial markets, the strategic role of central banks has come under intense scruti... Read more